Business

A put option is a contract that gives an investor the right, but not the obligation, to sell shares of an underlying security at a…

A journal literally means a daily record of news, events, activities, etc. It is an essential part of objective record-keeping and allows for concise review…

Financial Distress is a situation when a company is struggling to generate enough profits to meet its financial obligations. There could be various reasons for…

The most widely-accepted theory on the origin of the word “bankruptcy” comes from a mixing of the ancient Latin words bancus (bench or table) and…

Joint Stock Company It is an association of persons united for the purpose of carrying on a business whose capital is formed of shares. It…

The profitability index (PI) refers to the ratio of discounted benefits over the discounted costs. It is a capital budgeting tool that helps to decide…

The Net Present Value (NPV) is a means of evaluating the actual long-term profitability of an investment or a project through the initial outflow, future…

The resource curse is when a country experiences the need to diversify away from an abundant, but finite natural resource. The term resource curse represents…

In finance, the strike price (or exercise price) is the set price at which a derivative contract can be bought or sold when it is…

Time value is the main reason there is little exercising of options but a considerable amount of closing out, offsetting, covering, and selling of shares…

Dutch disease is an economic term for the negative consequences that can arise from a spike in the value of a nation’s currency. In economics,…

The term moneyness is most commonly used with put and call options and is an indicator as to whether the option would make money if…